SNB's Jordan: We have a slightly deflationary environment

Author: Justin Low | Category: Central Banks

Comments by SNB chief, Thomas Jordan, at a UBS event

  • We do not expect a rapid recovery
  • Making forecasts at this moment is very difficult
  • It is crucial lockdown restrictions are reduced whenever possible
  • Must ensure that monetary conditions remain accommodative
  • SNB willing to intervene in currency markets more strongly
  • Negative rates and interventions are particularly important at the moment
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Nothing out of the usual from Jordan, as he reaffirms the central bank's commitment to intervene strongly to limit the franc strength. In any case, I reckon he can breathe easier after seeing the recent developments today in response to the EU recovery fund proposal.

EUR/CHF has climbed strongly to near 1.0690 currently and is well off the "floor" near 1.0500 that it was hovering around over the past few weeks.

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